NIRMITHI KENDRA V. DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/30733/2016

AI Insights

The case involves M/S. Nirmithi Kendra, a government undertaking, which filed a writ petition against the Deputy Commissioner of Income Tax (Exemptions) and the Commissioner of Income Tax (Appeals). The petitioner sought to quash an assessment order and requested the appellate authority to consider their stay petition. The High Court had previously directed the petitioner to pay 15% of the tax demand, which they complied with. The court's decision in this writ petition was to ensure that the appeal is considered on its merits and to stay further recovery proceedings pending the decision on the appeal.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 758776 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 21-10-2016
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K M V PANDALAI
• Assessee Lawyers: BOSCO
• Keywords: Appeal; Assessment Order; Stay of recovery; Writ of Certiorari; Writ of Mandamus

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE FRIDAY, THE 21ST DAY OF OCTOBER 2016/29TH ASWINA, 1938 WP(C).No. 30733 of 2016 (N) ---------------------------- PETITIONER : ---------------------- M/S. NIRMITHI KENDRA, NEAR CIVIL STATION, AYYANTHOLE, THRISSUR- 680 003. REPRESENTED BY MR. BOSCO M.M., EXECUTIVE SECRETARY & PROJECT MANAGER. BY ADVS.SRI.ANIL D. NAIR SRI.R.SREEJITH KUM.SOUMYA PRAKASH KUM.MEKHALA M.BENNY RESPONDENT(S): ---------------------------- 1. THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS), OFFICE OF COMMISSIONER OF INCOME TAX (EXEMPTION), KOCHI-682 018. 2. THE COMMISSIONER OF INCOME TAX (APPEALS), AAYKAR BHAVAN, THRISSUR, PIN- 680 001. BY SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21-10-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C).No. 30733 of 2016 (N) ------------------------------------------ APPENDIX PETITIONER(S)' EXHIBITS ---------------------------------------- EXT. P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 22.2.2016 FOR THE ASSESSMENT YEAR 2013-14. EXT. P2 TRUE COPY OF THE APPEAL MEMORANDUM FILED BEFORE THE 2ND RESPONDENT. EXT. P3 TRUE COPY OF THE STAY PETITION FILED BEFORE THE 2ND RESPONDENT. EXT. P4 TRUE COPY OF THE JUDGMENT DATED 8.4.2016 IN W.P.C. NO. 14234/2016 (D) EXT. P5 TRUE COPY OF THE NOTICE DATED 11.7.2016 ISSUED BY THE 2ND RESPONDENT. EXT. P6 TRUE COPY OF THE OFFICE MEMORANDUM OF CBDT DATED 29.7.2016. EXT. P7 TRUE COPY OF THE ORDER DATED 17.8.2016 ISSUED BY THE 2ND RESPONDENT. RESPONDENT(S)' EXHIBITS: NIL ------------------------------------------ /TRUE COPY/ P.S.TO JUDGE sts A.M. SHAFFIQUE, J. =============== W.P. (C) No. 30733 of 2016 ================== Dated this, the 21st day of October, 2016 J U D G M E N T This writ petition has been filed inter alia seeking the following reliefs:- “(a) To call for the records leading to issuance of Exhibit P7 and quash the same by issuing a writ of Certiorari. (b) To issue a writ of mandamus, and such other writ, order or direction, directing the 2nd respondent to take on file the application for stay pursuant to Office Memorandum issued by CBDT. (c) Pending hearing and final disposal of this writ petition, this Hon'ble Court be pleased to grant stay of recovery of tax demanded under Exhibit P7.” 2. Petitioner is a Government of Kerala Undertaking, which had preferred appeal and stay petition against an order of assessment. A conditional order of stay was passed by which the petitioner was directed to remit 50% of the demand. When the above matter came up for hearing before this Court, this Court directed the petitioner to pay 15% of the demand within a period of four weeks. W.P(C) No.30733/16 -:2:- 3. Learned counsel appearing for the petitioner submits that the said amount had been deposited as per chelan dated 20/10/2016. 4. Having regard to the fact that 15% of the amount has been deposited, I am of the view that a direction can be issued to the appellate authority to consider the appeal on merits and until such time, further proceedings pursuant to the order of assessment can be stayed. Accordingly, this writ petition is disposed of as under:- (i) Ext.P7 shall stand modified to the extent the petitioner is directed to pay 15% of the demand which has already been paid as per chelan dated 20/10/2016. (ii) The appellate authority shall consider the appeal on merits and pass appropriate orders. (iii) Until such time, further proceedings for recovery shall be kept in abeyance. Sd/- A.M. SHAFFIQUE, JUDGE Rp21/10/2016 //True Copy// P.S to Judge "